Vegas Company owes $137,174 in back wages after DOL Investigation

The Las Vegas plastering company Platinum Plastering found themselves under investigation by the U.S. Department of Labor for issues related to whether they properly paid overtime. While the news release stated the employer failed to keep accurate records of the number of hours employees worked, the investigation seemed to be in large part about workers that were paid piecework basis.

As explained on the DOL website, the regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings.

The DOL News Release states investigators found that Platinum Plastering failed to pay piece-rate employees overtime at one-and-a-half times their regular rates of pay when they worked more than 40 hours per week. The investigation revealed that on average, the underpaid piece rate employees worked more than 45 hours per week. The DOL emphasized in the news release that unless an exemption applies, employees are expected to be paid at this overtime rate (time-and-one-half workers’ regular rate) regardless if the employee is paid by the hour, a day rate, a salary, a piece rate, or by any other method. According to the DOL’s report of their investigation, Platinum Plastering was paying employees the same piece rate regardless of the number of hours they worked per week.

As a result of the investigation, Platinum Plastering will pay $137,174 in backwages owed to 156 employees.

This comment from the Las Vegas Wage and Hour District Director Higinio Ramos indicated this may be an industry-wide problem. Mr. Ramos stated, “Other employers in this industry should use this case as an opportunity to evaluate their own pay practices to make sure they comply with the law, and avoid violations like those found in this case.”

Lessons to be learned from this would be to really understand piece rate with employees and to make sure any overtime is actually being paid appropriately and the documentation is backing up the pay.